Business inventories climbed in May for the...

Business inventories climbed in May for the 17th consecutive month, the government said, but sales also rose strongly, easing economists’ worries that too many goods are accumulating on shelves and back lots. The Commerce Department said inventories rose 0.6% to a seasonally adjusted $728.4 billion, while sales rose 0.9% to $483.7 billion. Inventories in May were 7.5% higher than a year ago, while sales were 7.8% higher. Economists generally take a combination of rising inventories and falling sales as a sign of future production cuts. However, because sales rose strongly in May, the jump in inventories is less troublesome.